All Forum Posts by: Travis Sperr

The beauty of private money - it is all negotiable. payments or no payments, equity or debt, to share or not to share profit, points, rate, term. Negotiate a win-win and get the deal done!

The biggest challenge in using a SDIRA to invest in RE is the amount of capital needed in the account to get going and even with a good size IRA - do you want to tie up such a large portion in one asset? Further the financing is much more restrictive - non recourse - typically 65% LTV. In the short term, doing flips in your IRA could be a great way to build an account. I just wrapped up a flip with a partner - he was able to add $30,000 tax free to his IRA account with a $55,000 investment.

Great benefits in doing deals inside a retirement account, but challenging. The benefits of real estate out side of retirement is the ability to finance. After you get a handful of deals done you will start to look at deals a little different and bring in retirement funds where you can.

@Steve Bauer Welcome! Best of luck to you as you start your RE investing. There are a lot of great meetings in the TC, be sure to check them all out and see what is the best fit for you. We host a few events per month in your area, happy to share details if you want to shoot me a note.

Town homes are individually deeded  -with what is referred to as a lot and block - this just means that the property has its own tax/parcel id number - it can be owned separate from the other units. A town home wont have a unit above or below - the unit is owned from the ground or lot up to the sky.

Multifamily units are almost always going to be zoned as multi unit with the whole structure being one owner, tax id, etc. In most places can't be split to sell individually.

@Mark Anderson noticed you are considering becoming an appraiser - the industry has changed significantly in the last few years. Connect with a few and see if you feel it will be a good fit for you. The good news is I have never met an appraiser who didn't like to talk!

Business cards! I cant believe how many people show up to networking events and don't have a business card. Spend a little money and get some cards made.

Second - @Aaron Mazzrillo leave your money at home. 

Don't wait to buy real estate, buy real estate and wait.
- T. Harv Eker

I love the conversation of about Denver being a bubble. There is no indication of a bubble in Denver, when you look at the data - there has been about the same amount of closings each month, year over year since 2008 - what has changed is the inventory. September 2007 there were 30,000 listings in Denver - January 2015  there were just over 4,000. People are paying over asking, waiving appraisals and inspections because there is nothing available - supply and demand. 

Denver is a great place to live, unemployment is low, lifestyle is great and we are recovering quickly. What most don't, realize, remember or know is that Denver was one of the 1st markets in the country to get hit in 2007 - so it is one of the 1st and strongest in the recovery. If you are investing for the long term the market doesn't matter - for example do you stop contributing to your 401k because the market is at the highest levels ever?

@Rick Bassett the best way I have found is to just tell the tenant that they are complaining a lot - way more than other tenants and if she wants to move you will let her out of the lease. Sometimes tenants need a reminder that they need you more than you need them. If it doesn't stop don't renew. I would rather get less rent then to deal with constant petty requests. 

To buy properties faster - look at buying with Hard or Private Money - fix refi - using the rent from the subject property, you should be able to do a couple at a time depending on DTI. I was able to buy 8 properties with this strategy, in about 2 years.

When you get over 10 properties - you can do it all the same, but you will need to refi with a local bank or commercial lender - like B2R. Often lower loan to value, higher rate, shorter term. But when you have 10 cash flowing properties, with equity it shouldn't be an issue continuing buying and/or refinancing new properties.

We are funding a lot of deals in this market- although $100k is a fair sum of money - it isn't going to get you a 1st position note on a rehab property in the Denver metro. 

There are still good deals in the Denver Metro area - they are more difficult to find but they are out there. I am still seeing decent cash flow properties - of course not no money down. Too often as investors we get into this mindset that we need to buy 17 properties tomorrow. If you slow down a little bit and look for discounted properties that need a little bit of work for rental and buy one a year or one every other year until you are 40, 50, 60 will you retire well? Rental properties are great to own because they typically pay for themselves and appreciate over time. In Denver the average appreciation over 40 years is about 6% - I am not sure you are going to get that in the Midwest. I don't buy on appreciation in the short term, but I plan to own all of my units forever.

I don't follow turnkey deals -  what annual return would you expect on a $100k investment?